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Account Queries |
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ISA Queries |
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Cheque Clearing System |
What documentation do I need to open an investment account?
Unless you are an existing account holder with the Newcastle Building Society, we will require proof of identity and residency before you can open an investment account. For further details please ask for our leaflet entitled 'Proof of Residency and Identity'.
When do I earn interest on my cheque investment?
If you make your investment by cheque, you will earn interest from the second working day after receipt (inclusive) until the day prior to withdrawal (working days do not include Saturdays, Sundays, or Bank Holidays). For security reasons, this cheque should be made payable to Newcastle Building Society Re: the person who is opening the account (the 'account holder(s)').
Where do I find out about product 'Terms and Conditions'?
We are committed to ensuring that you are fully familiar with the terms and conditions of your chosen account before you decide to invest. As a result you will find that any terms and conditions associated with your chosen account are printed in the associated product leaflet. Alternatively you can access this information on our website (www.newcastle.co.uk). In the event that the Society changes the terms and conditions of your account (other than a change to interest rates) you will be notified in writing. Notice will be given 30 days prior to the change if the change is considered to be detrimental and within 30 days of making the change if it is to your benefit.
Will I receive an account statement?
Statements will be issued to you in accordance with the terms and conditions associated with your account i.e. annually or monthly. In the event that you have a query with your statement, or passbook entry, please contact us on 0191 244 2000.
What if I have to change my personal details?
In the event that you change your personal details such as name, address etc. you should notify the Society immediately in writing. Alternatively you can complete a 'Change of Details Form' and return this to us together with suitable proof of residency and identity.
Unless your account is a postal account or online account a passbook will be provided to you when you open an account. You are advised to produce this whenever you wish to make additional investments or withdrawals. You should also remember that your passbook belongs to us and you must take care to keep your passbook safe and to prevent it from being lost, stolen or used by anyone else. If you do lose your passbook this should be reported to us immediately. Although we will endeavour to issue a new passbook to you as quickly as possible this process could take up to fourteen days.
What do I need to operate a 'Direct' account?
If your account is a non passbook account you will be given a password and/or unique User ID for security reasons. You will need to advise us of this information in order to operate your account. Please note that Newcastle Building Society can not be held liable for unauthorised use of your User ID/Password information.
In order to prevent the unauthorised use of your account you are advised to take the following precautions:-
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destroy any notification you receive once the information has been memorised |
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if you need to make a note of this information please try to ensure that this is written in a way that is only recognisable by yourself i.e. in code and that the information is kept in a safe place |
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take care to ensure that nobody else can observe you when you are using this information to gain access to your account |
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never store this information on your PC |
Failure to use the correct User ID and/or Password will mean that you will be unable to make any withdrawals from the account.
If you suspect that your User ID/Password has been discovered by someone else or you have lost these details please call us immediately on 0845 606 5522 so that we can place a stop on your account.
We will then provide you with a new User ID/Password. In certain circumstances it also may be necessary for you to provide us with suitable proof of residency and identity.
What if I need to 'stop' a cheque?
If for any reason you need to stop a cheque you must contact us as soon as possible. We will then investigate the matter to see whether the cheque has been presented and if it can be stopped. A cheque can only be stopped if it has been lost or stolen and written confirmation will be required and you will be asked to indemnify the Society.
How soon can I withdraw against a cheque investment?
Six working days must elapse before withdrawals will be permitted against cheques paid into an account (other than by special clearance).
For example, taking the case of a cheque paid on a Monday:
| Day 0 | Monday | Customer Pays in cheque |
| No later than Day 2 | Wednesday | Credit interest payable (if a feature of the account) or overdraft interest reduced. |
| No later than Day 4 | Friday | Customer allowed to withdraw the cheque proceeds (not necessarily for savings accounts) |
No later than Day 6 |
Tuesday | Certainty that cheque will not 'bounce'. Proceeds can be withdrawn from a savings account if the account allows withdrawals. |
What if I lose a cheque you have issued?
If a cheque which we have given to you for a cheque withdrawal is lost or stolen you must inform us immediately and we will then do what we reasonably can to stop the cheque. (If the cheque has been presented for payment and honoured, then we will be unable to stop the cheque).
What would happen if my cheque were to be returned unpaid?
On occasion we do receive unpaid cheques from investors. If this situation should affect you we will notify you in writing to inform you of what actions are required.
What if I forget to 'present' a cheque issued by the Newcastle?
In the event that a cheque is drawn from your account but not presented within 6 months, then the cheque will be re-credited to your account.
Who do I make cheques payable?
For security reasons you are advised to make your cheque payable as follows: Newcastle Building Society, re your name, account number XXXXXXX (if known). In addition please remember to draw a line through any unused space on the cheque.
On what basis do you operate joint accounts?
If your account is a joint account the terms and conditions associated with the account will apply to both account holders, i.e. both together and separately.
Are both holders required to sign for withdrawals on a joint account?
At the time of applying to open a joint account you may be asked to specify whether you wish withdrawals and transfers to be permitted against any one of the account holders instructions or both account holders. Following this your account will be operated in accordance with these instructions.
What happens if there is a dispute between joint account holders, where it is 'either' 'or' to operate the account?
In the event of a dispute between joint account holders or if they become divorced or separated the Society must be notified immediately in writing by one or both account holders. Following this we will only permit withdrawals from the account upon receipt of a signed instruction from both account holders.
What happens if one holder on a joint account dies?
In the event of the death of any customer the account will remain open in the name of the remaining account holder(s).
Do you send communications to both holders on a joint account?
Unless we receive written notification requesting correspondence to be sent to both account holders, all correspondence will be sent to the first named account holder only.
Who has membership rights on a joint account?
For membership purposes only the first named account holder on a joint account will be given membership rights of the Society.
How much can I withdraw from my account at one of your branch offices?
Withdrawals from investment accounts are available by cash or cheque from our branches, subject to cleared funds being available in your account, a passbook being produced and suitable identification being provided.
Cleared funds are defined as cash investments or cheques, which have been paid into your account six days previously. Withdrawals are available as follows:-
* A maximum of £500 cash from any account in any one day.
* Cheques totalling £50,000 from any account in any one day.
What if I need a cheque for more than £50,000?
Cheques in excess of this amount are available by post within 3 working days from our Principal Office, Portland House, New Bridge Street, Newcastle upon Tyne, NE1 8AL. Alternatively telegraphic transfers can be arranged with suitable notice and payment of the necessary fee. Please note: Details of withdrawal terms at our network of agents can be obtained from your local branch or our Principal Office.
Can I change my mind about opening an account once I've applied?
If you are not happy with your choice of account, you have the right to cancel the account within 14 calendar days (excluding public holidays) of your receipt of a letter from the Newcastle Building Society confirming that your account has been opened. Any requests to cancel must be made in writing to the Society's Principal Office. If you decide to cancel, the Society will send a cheque to cover your original investment, plus any interest earned. Interest will be paid at prevailing Nova Plus rates, subject to the deduction of the lower rate of tax (currently 20%). This right can be exercised regardless of the notice period applicable to the account.
Unless otherwise specified on your product literature all interest rates are variable and may be changed at any time.
Why do you change interest rates?
We may need to vary the interest rate on your investment account to bring the interest rate into line with any variations applied by the Chancellor of the Exchequer, or the Bank of England.
I think I have an account with you. How can I trace it?
To help us trace your account you will need to complete a 'Dormant Savings
Account' leaflet which is available by clicking
here (PDF) 
An ISA is a type of savings account where the interest you earn is paid without deduction of tax. This is not the case with an ordinary Newcastle Building Society account (unless of course you are a non tax payer).
The subscriptions to the account are limited within each tax year.
What is the benefit of an ISA?
The main benefit of the Cash ISA is the fact that the interest earned is tax free.
ISA's can only be provided by authorised 'ISA Managers'. The Newcastle Building Society has obtained the relevant authorisation and offer a range of Cash ISA's. As an ISA Manager the Newcastle would be responsible for ensuring your ISA account complies with, and is operated in accordance with the terms and conditions specified by HM Revenue and Customs.
There are two types of ISA:
Stocks and Shares ISAs
A Stocks and Shares ISA enables you to invest up to £7,200 each tax year
Cash ISAs
A Cash ISA enables you to invest up to £3,600 each tax year.
The Newcastle Building Society is an approved ISA Manager, managing Cash ISAs. We can refer you to Newcastle Financial Services Ltd (NFSL) who can advise on a range of Stocks and Shares ISAs.
You do not have to hold both ISA elements. You can invest in both a Cash ISA and a Stocks and Shares ISA providing you do not exceed the maximum allowance of £7200 for each tax year. You can not subscribe to more than one Cash ISA or more than one Stocks and Shares ISA in the same tax year.
You can transfer your current year subscriptions from a Cash ISA to a Stocks and Shares ISA. The subscriptions into the Cash ISA are then treated as if they were made to the Stocks and Shares ISA, allowing you to subscribe to a Cash ISA following the transfer.
This Cash ISA option does not satisfy the minimum standards for a deposit-based stakeholder account.
Individual ISA Managers will give you details of the ISA's they offer and some may be able to provide advice. Any of the Newcastle's staff will be able to explain our products. If you wish to invest in more than one of the ISA components then an independent financial advisor can help in choosing the right option for you.
Is there a limit to how much I can save?
You can save as little as you like in a Newcastle Building Society Cash ISA. The initial investment amount may vary depending upon which of our range of ISA's you prefer. During any tax year, the maximum amount you can save in a Cash ISA is £3,600. Limits are subject to legislation which may change in the future.
To open an ISA you have to be aged 18 or over, or for Cash ISA's aged 16 or over. You also have to be resident and ordinarily resident in the United Kingdom for tax purposes (It is important that you ask your Tax Office if you are in any doubt about your residential status).
If you are a crown employee, such as a diplomat or a member of the armed forces, who are working overseas and paid by the government then you are eligible to open an ISA.
You can not open an ISA if you are a non UK resident.
Can I have a joint ISA with my husband/wife etc?
You cannot hold an ISA jointly with, or on behalf of, anyone else.
What are 'Stakeholder'standards?
The Stakeholder suit of products is designed to give investors greater clarity about the range of products available. The view was that many investors were deterred from investing due to the complexity of the market and the nature of the regulatory system. Stakeholder products are designed to address these concerns.
There are certain criteria which must be met to allow a product to be classed as a Stakeholder product.
These are;
a) The minimum amount the account holder can deposit on a single occasion is £10.
b) We accept payment to the account by a number of means including Cash, Cheque and Standing orders.
c) Interest accrues on a daily basis at a rate not less than Bank of England Base less 1% pa.
d) We must pay any cash or interest held in the account to the holder within 7 days on receipt of an instruction from the account holder.
e) No limit to amount of withdrawals customer can request.
Can I transfer my ISA to/from another institution?
The legislation allows for an individual to transfer from one ISA to another, providing the ISA Managers allow transfers. Clarification should always be sought before proceeding.
The Newcastle does not charge an administration fee if a customer wishes to transfer their ISA to or from the Society. Under the legislation we are obliged to complete the transfer within 30 days of receipt of the original notification.
Do I have to invest with the same ISA Manager each year?
There is no requirement to use the same ISA Manager each year.
Providing you only subscribe to one ISA component in each tax year you are able to open an ISA each tax year with a different institution. For example you could open a Cash ISA with your bank in one tax year and open a Cash ISA with Newcastle Building Society in another tax year.
What period does the tax year cover?
The tax year runs from 6th April to 5th April the following year.
What happens if I pay into too many ISAs?
HM Revenue and Customs will monitor ISA returns provided by all financial institutions to ensure that the one ISA per tax year rule is strictly enforced.
ISA customer acceptance forms contain a declaration that you will not invest into another ISA of the same component within a given tax year. If you do mistakenly invest within two ISAs in any given tax year then the matter will have to be handled via HM Revenue and Customs. As a general rule one of the ISAs will have to be 'voided', and no benefit will be derived as a result of opening the second ISA.
What happens if I'm physically unable to sign the forms?
An application by someone acting under a Power of Attorney may be accepted where the investor is physically incapable of making the application. Under these circumstances the Society would require;
I) The Power of Attorney
II) A written declaration from the attorney confirming that the investor is physically incapable of making the application. (This should be attached to the application form as HM Revenue and Customs may require sight of this declaration).
Can I invest funds on behalf of someone who is mentally incapable of handling their own affairs?
The Society can accept applications made by either;
I) An attorney appointed for a person who is mentally incapacitated (The Enduring Power of Attorney should have been registered by the Court of Protection, or stamped by the Public Trust Office).
II) A receiver appointed by the Court of Protection for someone who is mentally incapacitated. (the document of appointment must be produced).
What happens to my cheque when it is invested in my Newcastle Account?
The Cheque clearing system involves the transmission, and settlement of payments between accounts held at different banks. The cheque clearing operates on a three day processing cycle;
Day 1; You invest your cheque into your account with the Newcastle during the course of a day's business. These are normally passed to our Bankers that evening.
Day 2; The next day our bankers deliver the cheque to an exchange centre, where it is handed over to the bank on which it is drawn.
Day 3: On the morning of the next working day, staff at that bank will
review the cheque and make a decision about whether to pay or return it.
What is a 'bounced cheque' and how quickly are you notified of these?
All cheques run through the three day process outlined above. If, on receipt at the 'drawing' institution, there are insufficient funds for the cheque to be paid, then this cheque will not be honoured.
A cheque which is to be dishonoured (bounced) is returned by first class post direct to the point where it was invested, or in some cases to a central returns unit within the clearing centre.
As such the earliest the Newcastle would be notified of a 'bounced'
cheque would be the morning of day four. There are some circumstances
where a decision regarding dishonouring a cheque can be delayed until
the day following presentation.
Why am I charged for an RD Cheque?
The Society will not charge for the first RD or returned cheque received on a customers account.
The Society is charged by our Bankers for each unpaid cheque although, as a gesture of goodwill, we do not pass these charges to our customers for the first cheque returned on their account.
On receipt of the first unpaid cheque, we will return the cheque to the account holder, together with a letter notifying the customer that they will be charged for future unpaid cheques. The Society will, upon receipt of any further unpaid cheques, apply an administration fee to the account in question.
As a Customer Service issue, the Investment Manager can, in exceptional circumstances, review a case and, depending upon the circumstances, make a decision about reversing the fee.
It wasn't my cheque, why have you charged me?
The Society appreciates that on occasions unpaid cheques could belong to a third party, and that our customer has invested the cheque in good faith, not realising that the cheque would be returned unpaid.
This is one reason why we do not charge for the first unpaid cheque returned on an account. The customer must remember that the Society is charged by our bankers for each returned cheque and whilst we are happy not to pass charges for the first returned cheque we must ensure that additional charges are passed to the appropriate account holder.
Where a cheque has been returned from a third party, the Society would suggest the account holder takes the matter of the charge up with the person who drew the original cheque.
Those people who run their Newcastle accounts as business accounts must be aware that charges will be incurred for returned cheques. The advantage to these customers of running this type of account with the Newcastle is that there is no annual administration fee which would be applied by say a High Street Bank.
My cheque has been debited from my bank account, why can't I withdraw against this?
The Society will not allow withdrawals against any 'uncleared cheques' for 6 days following receipt.
It must be remembered that we are not a bank, and our accounts are not intended to offer the functionality associated with a 'current account'. If someone wants to obtain value within three days against a cheque then realistically it should be invested in a bank account.
In exceptional circumstances the Society would allow a withdrawal against an uncleared cheque, providing the bank on whom the cheque was drawn would confirm in writing that the cheque had been paid and that the Society would receive value. Under these circumstances the Society would have an indemnity from the bank confirming that the cheque would be honoured, and would be prepared to allow a withdrawal. Ordinarily the Investment Manager will liaise with his Line Executive to gain approval.
It must be pointed out however that in some cases the bank may not be prepared to do this.
Can I make a withdrawal against an uncleared cheque?
Ordinarily the Society will not allow withdrawals against 'uncleared' funds for six days following receipt of a cheque.
There is however one circumstance in which the Society would allow such a withdrawal;
If a customer has sufficient cleared funds within other accounts, the balances of which would cover the 'uncleared' amount. In these cases a 'stop' would be applied to the other accounts to ensure no loss is incurred by the Society.
Why do you insist on 6 days before withdrawals are allowed?
It will ordinarily take three working days for a cheque to go through the clearance system, however it can take up to an extra three days to be advised of the unpaid cheque.
I really want to put this cheque into my Newcastle account, Is there any way I can do this and still have access within 6 days?
There are a few options open to you, which I will list below;
I) The cheque would be banked as normal, and you could then contact your bank following three working days and ask if they would confirm to the Society in writing that the cheque had been paid. Upon receipt of the written confirmation then payment would be allowed.
II) A cheque can be banked under 'Special Presentation', subject to payment of a fee. The Society then post the cheque directly to our Bankers by first class mail. Upon receipt they then post this cheque to the bank on which the cheque was drawn. This bank, upon receipt of the cheque, will then notify our bankers on, potentially working day 4 and inform them whether the cheque will be paid or not.
It must be stressed that as this service depends heavily on first class post there may be occasions where we do not receive notification of the cheque status within the time-scales outlined above. Clearly if the cheque goes 'missing' within the system we can not allow a withdrawal against these funds.